[Originating in the Committee on Finance; reported February 15,
2011.]

____________

A BILL to amend and reenact §7-22-3, §7-22-4, §7-22-5, §7-22-7,
§7-22-10, §7-22-12, §7-22-15, §7-22-17 and §7-22-20 of the
Code of West Virginia, 1931, as amended, all relating to
revising the County Economic Opportunity Development District
Act generally; defining the term “remediation”; including
remediation of landfills, former coal or other mining sites,
solid waste facilities or hazardous waste sites as permissible
development expenditures for approved projects; changing
standard by which the maximum amounts of reserves that may be
established in the financing of a project are measured;
reducing the amount of capital investment required for project
approval; providing that the Development Office cannot approve
a project involving remediation unless all development
expenditures proposed within a certain time frame result in
more than $25 million in capital investment in the district;
changing “ordinance” to “order”; correcting language by
changing “municipality” to “county”; providing that the
Development Office may not approve a project involving
remediation unless the county commission submits clear and
convincing information that the proposed remediation
expenditures to be financed with bonds or notes do not
constitute more than twenty-five percent of a project’s total
development expenditures; and providing technical and clerical
cleanup.

Be it enacted by the Legislature of West Virginia:

That §7-22-3, §7-22-4, §7-22-5, §7-22-7, §7-22-10, §7-22-12,
§7-22-15, §7-22-17 and §7-22-20 of the Code of West Virginia, 1931,
as amended, be amended and reenacted, all to read as follows:

ARTICLE 22. COUNTY ECONOMIC OPPORTUNITY DEVELOPMENT DISTRICTS.

§7-22-3. Definitions.

For purposes of this article, the term:

(1) “County commission” means the governing body of a county
of this state;

(2) “Development expenditures” means payments for governmental
functions, programs, activities, facility construction,
improvements and other goods and services which a district board is
authorized to perform or provide under section five of this
article;

(3) “District” means an economic opportunity development
district created pursuant to this article;

(4) “District board” means a district board created pursuant
to section ten of this article; and

(5) “Eligible property” means any taxable or exempt real
property located in a district established pursuant to this
article.

(6) “Remediation” means measures undertaken to bring about the
reconditioning or restoration of property located within the
boundaries of an economic opportunity development district that has
been affected by exploration, mining, industrial operations or
solid waste disposal and which measures, when undertaken, will
eliminate or ameliorate the existing state of the property and
enable the property to be commercially developed.

A county commission may, in accordance with the procedures and
subject to the limitations set forth in this article:

(1) Create one or more economic opportunity development
districts within its county;

(2) Provide for the administration and financing of
development expenditures within the districts; and(3) Provide for the administration and financing of a
continuing program of development and redevelopment expenditures
within the districts.

§7-22-5. Development expenditures.

Any county commission that has established an economic
opportunity development district under this article may make, or
authorize to be made by a district board and other public or
private parties, development expenditures as will promote the
economic vitality of the district and the general welfare of the
county, including, but not limited to, expenditures for the
following purposes:

(1) Beautification of the district by means such asincluding
landscaping and construction and erection of fountains, shelters,
benches, sculptures, signs, lighting, decorations and similar
amenities;

(2) Provision of special or additional public services such as
sanitation, security for persons and property and the construction
and maintenance of public facilities, including, but not limited
to, sidewalks, parking lots, parking garages and other public
areas;

(3) Making payments for principal, interest, issuance costs,
any of the costs described in section twenty of this article and
appropriate reserves for bonds and other instruments and
arrangements issued or entered into by the county commission for
financing the expenditures of the district described in this
section and to otherwise implement the purposes of this article;(4) Providing financial support for public transportation and
vehicle parking facilities open to the general public, whether
physically situate within the district's boundaries or on adjacent
land;

(5) Acquiring, building, demolishing, razing, constructing,
repairing, reconstructing, refurbishing, renovating,
rehabilitating, expanding, altering, otherwise developing,
operating and maintaining real property generally, parking
facilities, commercial structures and other capital improvements to
real property, fixtures and tangible personal property, whether or
not physically situate within the district's boundaries: Provided,
That the expenditure directly benefits the district;(6) Developing plans for the architectural design of the
district and portions thereof and developing plans and programs for
the future development of the district;(7) Developing, promoting and supporting community events and
activities open to the general public that benefit the district;(8) Providing the administrative costs for a district
management program;(9) Providing for the usual and customary maintenance and
upkeep of all improvements and amenities in the district as are
commercially reasonable and necessary to sustain its economic
viability on a permanent basis;(10) Providing any other services that the county commission
or district board is authorized to perform and which the county
commission does not also perform to the same extent on a countywide
basis;(11) Making grants to the owners or tenants of economic
opportunity development district for the purposes described in this
section;

(12) Acquiring an interest in any entity or entities that own
any portion of the real property situate in the district and
contributing capital to any entity or entities; and

(13) Remediation of publicly or privately owned landfills,
former coal or other mining sites, solid waste facilities or
hazardous waste sites to facilitate commercial development which
would not otherwise be economically feasible; and

(13) (14) To do any and all things necessary, desirable or
appropriate to carry out and accomplish the purposes of this
article notwithstanding any provision of this code to the contrary.

§7-22-7. Application to development office for approval of an
economic opportunity development district project.

(a) General. -- The development office shall receive and act
on applications filed with it by county commissions pursuant to
section six of this article. Each application must include:

(1) A true copy of the notice described in section six of this
article;

(2) The total cost of the project;

(3) A reasonable estimate of the number of months needed to
complete the project;

(4) A general description of the capital improvements,
additional or extended services and other proposed development
expenditures to be made in the district as part of the project;

(5) A description of the proposed method of financing the
development expenditures, together with a description of the
reserves to be established for financing ongoing development or
redevelopment expenditures necessary to permanently maintain the
optimum economic viability of the district following its inception:
Provided, That the amounts of the reserves shallmay not exceed the
amounts that would be required by ordinaryprevailing commercial
capital market considerations;

(6) A description of the sources and anticipated amounts of
all financing, including, but not limited to, proceeds from the
issuance of any bonds or other instruments, revenues from the
special district excise tax and enhanced revenues from property
taxes and fees;

(7) A description of the financial contribution of the county
commission to the funding of development expenditures;

(8) Identification of any businesses that the county
commission expects to relocate their business locations from the
district to another place in the state in connection with the
establishment of the district or from another place in this state
to the district: Provided, That for purposes of this article, any
entities shall be designated “relocated entities”;

(9) Identification of any businesses currently conducting
business in the proposed economic opportunity development district
that the county commission expects to continue doing business there
after the district is created;

(10) A good faith estimate of the aggregate amount of
consumers sales and service tax that was actually remitted to the
Tax Commissioner by all business locations identified as provided
in subdivisions (8) and (9) of this subsection with respect to
their sales made and services rendered from their then current
business locations that will be relocated from, or to, or remain in
the district, for the twelve full calendar months next preceding
the date of the application: Provided, That for purposes of this
article, the aggregate amount is designated as “the base tax
revenue amount”;

(11) A good faith estimate of the gross annual district tax
revenue amount;

(12) The proposed application of any surplus from all funding
sources to further the objectives of this article;

(13) The Tax Commissioner's certification of: (i) The amount
of consumers sales and service taxes collected from businesses
located in the economic opportunity district during the twelve
calendar months preceding the calendar quarter during which the
application will be submitted to the development office; (ii) the
estimated amount of economic opportunity district excise tax that
will be collected during the first twelve months after the month in
which the Tax Commissioner would first begin to collect that tax;
and (iii) the estimated amount of economic opportunity district
excise tax that will be collected during the first thirty-six
months after the month in which the Tax Commissioner would first
begin to collect that tax; and

(14) Any additional information the development office may
require.

(b) Review of applications. -- The development office shall
review all project proposals for conformance to statutory and
regulatory requirements, the reasonableness of the project's budget
and timetable for completion and the following criteria:

(1) The quality of the proposed project and how it addresses
economic problems in the area in which the project will be located;

(2) The merits of the project determined by a cost-benefit
analysis that incorporates all costs and benefits, both public and
private;

(3) Whether the project is supported by significant private
sector investment and substantial credible evidence that, but for
the existence of sales tax increment financing, the project would
not be feasible;

(4) Whether the economic opportunity district excise tax
dollars will leverage or be the catalyst for the effective use of
private, other local government, state or federal funding that is
available;

(5) Whether there is substantial and credible evidence that
the project is likely to be started and completed in a timely
fashion;

(6) Whether the project will, directly or indirectly, improve
the opportunities in the area where the project will be located for
the successful establishment or expansion of other industrial or
commercial businesses;

(7) Whether the project will, directly or indirectly, assist
in the creation of additional long-term employment opportunities in
the area and the quality of jobs created in all phases of the
project, to include, but not be limited to, wages and benefits;

(8) Whether the project will fulfill a pressing need for the
area, or part of the area, in which the economic opportunity
district is located;

(9) Whether the county commission has a strategy for economic
development in the county and whether the project is consistent
with that strategy;

(10) Whether the project helps to diversify the local economy;

(11) Whether the project is consistent with the goals of this
article;

(12) Whether the project is economically and fiscally sound
using recognized business standards of finance and accounting; and

(13) (A) The ability of the county commission and the project
developer or project team to carry out the project: Provided, That
no project may be approved by the development office unless the
amount of all development expenditures proposed to be made in the
first twenty-four months following the creation of the district
results in capital investment of more than $50 million$25 million
in the district and the county submits clear and convincing
information, to the satisfaction of the development office, that
suchthe investment will be made if the development office approves
the project and the Legislature authorizes the county commission to
levy an excise tax on sales of goods and services made within the
economic opportunity district as provided in this article.

(B) Notwithstanding any provision of paragraph (A) of this
subdivision to the contrary, no project involving remediation may
be approved by the Development Office unless the amount of all
development expenditures proposed to be made in the first
forty-eight months following the creation of the district results
in capital investment of more than $25 million in the district. In
addition to the remaining provisions of paragraph (A) of this
subdivision the development office may not approve a project
involving remediation authorized under section five of this article
unless the county commission submits clear and convincing
information, to the satisfaction of the development office, that
the proposed remediation expenditures to be financed by the
issuance of bonds or notes pursuant to section sixteen of this
article do not constitute more than twenty-five percent of the
total development expenditures associated with the project.

(c) Additional criteria. -- The development office may
establish other criteria for consideration when approving the
applications.

(d) Action on the application. -- The executive director of
the development office shall act to approve or not approve any
application within thirty days following the receipt of the
application or the receipt of any additional information requested
by the development office, whichever is the later.

(e) Certification of project. -- If the executive director of
the development office approves a county's economic opportunity
district project application, he or she shall issue to the county
commission a written certificate evidencing the approval.

The certificate shall expressly state a base tax revenue
amount, the gross annual district tax revenue amount and the
estimated net annual district tax revenue amount which, for
purposes of this article, is the difference between the gross
annual district tax revenue amount and the base tax revenue amount,
all of which the development office has determined with respect to
the district's application based on any investigation it considers
reasonable and necessary, including, but not limited to, any
relevant information the development office requests from the Tax
Commissioner and the Tax Commissioner provides to the development
office: Provided, That in determining the net annual district tax
revenue amount, the development office may not use a base tax
revenue amount less than that amount certified by the Tax
Commissioner but, in lieu of confirmation from the Tax Commissioner
of the gross annual district tax revenue amount, the development
office may use the estimate of the gross annual district tax
revenue amount provided by the county commission pursuant to
subsection (a) of this section.

(f) Certification of enlargement of geographic boundaries of
previously certified district. -- If the executive director of the
development office approves a county's economic opportunity
district project application to expand the geographic boundaries of
a previously certified district, he or she shall issue to the
county commission a written certificate evidencing the approval.

The certificate shall expressly state a base tax revenue
amount, the gross annual district tax revenue amount and the
estimated net annual district tax revenue amount which, for
purposes of this article, is the difference between the gross
annual district tax revenue amount and the base tax revenue amount,
all of which the development office has determined with respect to
the district's application based on any investigation it considers
reasonable and necessary, including, but not limited to, any
relevant information the development office requests from the tax
commissioner and the tax commissioner provides to the development
office: Provided, That in determining the net annual district tax
revenue amount, the development office may not use a base tax
revenue amount less than that amount certified by the tax
commissioner but, in lieu of confirmation from the Tax Commissioner
of the gross annual district tax revenue amount, the development
office may use the estimate of the gross annual district tax
revenue amount provided by the county commission pursuant to
subsection (a) of this section.

(g) Promulgation of rules. -- The executive director of the
development office may promulgate rules to implement the economic
opportunity development district project application approval
process and to describe the criteria and procedures it has
established in connection therewith. These rules are not subject to
the provisions of chapter twenty-nine-a of this code but shall be
filed with the Secretary of State.

§7-22-10. Ordinance Order to create district as approved by
Development Office and authorized by the
Legislature.

(a) General. -- If an economic opportunity development
district project has been approved by the executive director of the
development office and the levying of a special district excise tax
for the district has been authorized by the Legislature, all in
accordance with this article, the county commission may create the
district by order entered of record as provided in article one of
this chapter: Provided, That the county commission may not amend,
alter or change in any manner the boundaries of the economic
opportunity development district authorized by the Legislature. In
addition to all other requirements, the order shall contain the
following:

(1) The name of the district and a description of its
boundaries;

(2) A summary of any proposed services to be provided and
capital improvements to be made within the district and a
reasonable estimate of any attendant costs;

(3) The base and rate of any special district excise tax that
may be imposed upon sales by businesses for the privilege of
operating within the district, which tax shall be passed on to and
paid by the consumer, and the manner in which the taxes will be
imposed, administered and collected, all of which shall be in
conformity with the requirements of this article; and

(4) The district board members' terms, their method of
appointment and a general description of the district board's
powers and duties, which powers may include the authority:

(A) To make and adopt all necessary bylaws and rules for its
organization and operations not inconsistent with any applicable
laws;

(B) To elect its own officers, to appoint committees and to
employ and fix compensation for personnel necessary for its
operations;

(C) To enter into contracts with any person, agency,
government entity, agency or instrumentality, firm, partnership,
limited partnership, limited liability company or corporation,
including both public and private corporations, and for-profit and
not-for-profit organizations and generally to do any and all things
necessary or convenient for the purpose of promoting, developing
and advancing the purposes described in section two of this
article;

(D) To amend or supplement any contracts or leases or to enter
into new, additional or further contracts or leases upon the terms
and conditions for consideration and for any term of duration, with
or without option of renewal, as agreed upon by the district board
and any person, agency, government entity, agency or
instrumentality, firm, partnership, limited partnership, limited
liability company or corporation;

(E) To, unless otherwise provided in, and subject to the
provisions of any contracts or leases to operate, repair, manage
and maintain buildings and structures and provide adequate
insurance of all types and in connection with the primary use
thereof and incidental thereto to provide services, such as retail
stores and restaurants, and to effectuate incidental purposes,
grant leases, permits, concessions or other authorizations to any
person or persons upon the terms and conditions for consideration
and for the term of duration as agreed upon by the district board
and any person, agency, governmental department, firm or
corporation;

(F) To delegate any authority given to it by law to any of its
officers, committees, agents or employees;

(G) To apply for, receive and use grants-in-aid, donations and
contributions from any source or sources and to accept and use
bequests, devises, gifts and donations from any person, firm or
corporation;

(H) To acquire real property by gift, purchase or construction
or in any other lawful manner and hold title thereto in its own
name and to sell, lease or otherwise dispose of all or part of any
real property which it may own, either by contract or at public
auction, upon the approval by the district board;

(I) To purchase or otherwise acquire, own, hold, sell, lease
and dispose of all or part of any personal property which it may
own, either by contract or at public auction;

(J) Pursuant to a determination by the district board that
there exists a continuing need for redevelopment development
expenditures and that moneys or funds of the district are necessary
therefor, to borrow money and execute and deliver the district's
negotiable notes and other evidences of indebtedness therefor, on
the terms as the district shall determine, and give security
therefor as is requisite, including, without limitation, a pledge
of the district's rights in its subaccount of the economic
opportunity development district fund;

(K) To acquire (either directly or on behalf of the
municipalitycounty an interest in any entity or entities that own
any real property situate in the district, to contribute capital to
any entity or entities and to exercise the rights of an owner with
respect thereto; and

(L) To expend its funds in the execution of the powers and
authority given in this section, which expenditures, by the means
authorized in this section, are hereby determined and declared as
a matter of legislative finding to be for a public purpose and use,
in the public interest and for the general welfare of the people of
West Virginia, to alleviate and prevent economic deterioration and
to relieve the existing critical condition of unemployment existing
within the state.

(b) Additional contents of order. -- The county commission's
order shall also state the general intention of the county
commission to develop and increase services and to make capital
improvements within the district.

(c) Mailing of certified copies of order. -- Upon entry of an
order establishing an economic opportunity development district
excise tax, a certified copy of the order shall be mailed to the
State Auditor, as ex officio the chief inspector and supervisor of
public offices, the State Treasurer and the Tax Commissioner.

§7-22-12. Special district excise tax authorized.

(a) General. -- The county commission of a county, authorized
by the Legislature to levy a special district excise tax for the
benefit of an economic opportunity development district, may, by
order entered of record, impose that tax on the privilege of
selling tangible personal property and rendering select services in
the district in accordance with this section.(b) Tax base. -- The base of a special district excise tax
imposed pursuant to this section shall be identical to the base of
the consumers sales and service tax imposed pursuant to article
fifteen, chapter eleven of this code on sales made and services
rendered within the boundaries of the district. Sales of gasoline
and special fuel are not subject to special district excise tax but
remain subject to the tax levied by article fifteen, chapter eleven
of this code. Except for the exemption provided in section nine-f
of saidthat article, all exemptions and exceptions from the
consumers sales and service tax shall also apply to the special
district excise tax.

(c) Tax rate. -- The rate or rates of a special district
excise tax levied pursuant to this section shall be identical to
the rate or rates of the consumer sales and service tax imposed
pursuant to article fifteen, chapter eleven of this code on sales
made and services rendered within the boundaries of the district
authorized by this section.

(d) Collection by Tax Commissioner. -- The order of the county
commission imposing a special district excise tax shall provide for
the tax to be collected by the Tax Commissioner in the same manner
as the tax levied by section three, article fifteen, chapter eleven
of this code is administered, assessed, collected and enforced.

(1) The Tax Commissioner may require the electronic filing of
returns related to the special district excise tax imposed pursuant
to this section, and also may require the electronic payment of the
special district excise tax imposed pursuant to this section. The
Tax Commissioner may prescribe by rules promulgatedadopted or
proposed pursuant to article three, chapter twenty-nine-a of this
code, administrative notices, and forms and instructions, the
procedures and criteria to be followed to electronically file those
returns and to electronically pay the special district excise tax
imposed pursuant to this section.

(2) Any rules filed by the State Tax Commissioner relating to
the special district excise tax imposed pursuant to this section
shall set forth the following:

(A) Acceptable indicia of timely payment;

(B) Which type of electronic filing method or methods a
particular type of taxpayer may or may not use;

(C) What type of electronic payment method or methods a
particular type of taxpayer may or may not use;

(D) What, if any, exceptions are allowable, and alternative
methods of payment that may be used for any exceptions;

(E) Procedures for making voluntary or mandatory electronic
payments or both; and

(F) Any other provisions necessary to ensure the timely
electronic filing of returns related to the special district excise
tax and the making of payments electronically of the special
district excise tax imposed pursuant to this section.

(3)(A) Notwithstanding the provisions of section five-d,
article ten, chapter eleven of this code: (i) So long as bonds are
outstanding pursuant to this article, the Tax Commissioner shall
provide on a monthly basis to the trustee for bonds issued pursuant
to this article information on returns submitted pursuant to this
article; and (ii) the trustee may share the information so obtained
with the county commission that established the economic
opportunity development district that issued the bonds pursuant to
this article and with the bondholders and with bond counsel for
bonds issued pursuant to this article. The Tax Commissioner and
the trustee may enter into a written agreement in order to
accomplish the exchange of the information.

(B) Any confidential information provided pursuant to this
subdivision shall be used solely for the protection and enforcement
of the rights and remedies of the bondholders of bonds issued
pursuant to this article. Any person or entity that is in
possession of information disclosed by the Tax Commissioner or
shared by the trustee pursuant to subdivision (a) of this
subsection is subject to the provisions of section five-d, article
ten, chapter eleven of this code as if thatthe person or entity
that is in possession of the tax information is an officer,
employee, agent or representative of this state or of a local or
municipal governmental entity or other governmental subdivision.

(e) Deposit of net tax collected. --

(1) The order of the county commission imposing a special
district excise tax shall provide that the Tax Commissioner deposit
the net amount of tax collected in the Special Economic Opportunity
Development District Fund to the credit of the county commission's
subaccount therein for the economic opportunity development
district and that the money in the subaccount may only be used to
pay for development expenditures as provided in this article except
as provided in subsection (f) of this section.

(2) The State Treasurer shall withhold from the county
commission's subaccount in the Economic Opportunity Development
District Fund and shall deposit in the General Revenue Fund of this
state, on or before the twentieth day of each calendar month next
following the effective date of a special district excise tax, a
sum equal to one twelfth of the base tax revenue amount last
certified by the development office pursuant to section seven of
this article.

(f) Effective date of special district excise tax. -- Any
taxes imposed pursuant to the authority of this section shall be
are effective on the first day of the calendar month that begins
sixty days after the date of adoption of an order entered of record
imposing the tax or the first day of any later calendar month
expressly designated in the order.

(g) Copies of order. -- Upon entry of an order levying a
special district excise tax, a certified copy of the order shall be
mailed to the State Auditor, as ex officio the chief inspector and
supervisor of public offices, the State Treasurer and the Tax
Commissioner.

§7-22-15. Abolishment and dissolution of district; notice;
hearing.

(a) General. -- Except upon the express written consent of the
executive director of the development office and of all the holders
or obligees of any indebtedness or other instruments the proceeds
of which were applied to any development or redevelopment
expenditures or any indebtedness the payment of which is secured by
revenues payable into the fund provided under section eight of this
article or by any public property, a district may only be abolished
by the county commission when there is no outstanding indebtedness,
the proceeds of which were applied to any development or
redevelopment expenditures or the payment of which is secured by
revenues payable into the fund provided under section eight of this
article, or by any public property, and following a public hearing
upon the proposed abolishment.

(b) Notice of public hearing. -- Notice of the public hearing
required by subsection (a) of this section shall be provided by
first-class mail to all owners of real property within the district
and shall be published as a Class I-0 legal advertisement in
compliance with article three, chapter fifty-nine of this code at
least twenty days prior to the public hearing.

(c) Transfer of district assets and funds. -- Upon the
abolishment of any economic opportunity development district, any
funds or other assets, contractual rights or obligations, claims
against holders of indebtedness or other financial benefits,
liabilities or obligations existing after full payment has been
made on all existing contracts, bonds, notes or other obligations
of the district are transferred to and assumed by the county
commission. Any funds or other assets transferred shall be used for
the benefit of the area included in the district being abolished.

(d) Reinstatement of district. -- Following abolishment of a
district pursuant to this section, its reinstatement requires
compliance with all requirements and procedures set forth in this
article for the initial development, approval, establishment and
creation of an economic opportunity development district.

§7-22-17. Security for bonds.

(a) General. -- Unless the county commission shall otherwise
determinedetermines in the resolutionorder authorizing the
issuance of the bonds or notes under the authority of this article,
there is hereby created a statutory lien upon the subaccount
created pursuant to section eight of this article and all special
district excise tax revenues collected for the benefit of the
district pursuant to section eleven-a, article ten, chapter eleven
of this code for the purpose of securing the principal of the bonds
or notes and the interest thereon.

(b) Security for debt service. -- The principal of and
interest on any bonds or notes issued under the authority of this
article shall be secured by a pledge of the special district excise
tax revenues derived from the economic opportunity development
district project by the county commission issuing the bonds or
notes to the extent provided in the resolutionorder adopted by the
county commission authorizing the issuance of the bonds or notes.

(c) Trust indenture. --

(1) In the discretion and at the option of the county
commission, the bonds and notes may also be secured by a trust
indenture by and between the county commission and a corporate
trustee, which may be a trust company or bank having trust powers,
within or without the State of West Virginia.

(2) The resolution order authorizing the bonds or notes and
fixing the details thereof may provide that the trust indenture may
contain provisions for the protection and enforcing the rights and
remedies of the bondholders as are reasonable and proper, not in
violation of law, including covenants setting forth the duties of
the county commission in relation to the construction, acquisition
or financing of an economic opportunity development district
project, or part thereof or an addition thereto, and the
improvement, repair, maintenance and insurance thereof and for the
custody, safeguarding and application of all moneys and may provide
that the economic opportunity development district project shall be
constructed and paid for under the supervision and approval of the
consulting engineers or architects employed and designated by the
county commission or, if directed by the county commission in the
resolution order, by the district board, and satisfactory to the
purchasers of the bonds or notes, their successors, assigns or
nominees who may require the security given by any contractor or
any depository of the proceeds of the bonds or notes or the
revenues received from the district project be satisfactory to the
purchasers, their successors, assigns or nominees.

(3) The indenture may set forth the rights and remedies of the
bondholders, the county commission or trustee and the indenture may
provide for accelerating the maturity of the revenue bonds, at the
option of the bondholders or the county commission issuing the
bonds, upon default in the payment of the amounts due under the
bonds.

(4) The county commission may also provide by resolution and
in the trust indenture for the payment of the proceeds of the sale
of the bonds or notes and the revenues from the economic
opportunity development district project to any depository it
determines, for the custody and investment thereof and for the
method of distribution thereof, with safeguards and restrictions it
determines to be necessary or advisable for the protection thereof
and upon the filing of a certified copy of the resolution or of the
indenture for record in the office of the clerk of the county
commission of the county in which the economic opportunity
development project is located, the resolution has the same effect,
as to notice, as the recordation of a deed of trust or other
recordable instrument.

(5) In the event that more than one certified resolution or
indenture is recorded, the security interest granted by the first
recorded resolution or indenture has priority in the same manner as
an earlier filed deed of trust except to the extent the earlier
recorded resolution or indenture provides otherwise.

(d) Mortgage or deed of trust. --

(1) In addition to or in lieu of the indenture provided in
subsection (c) of this section, the principal of and interest on
the bonds or notes may, but need not, be secured by a mortgage or
deed of trust covering all or any part of the economic opportunity
development district project from which the revenues pledged are
derived and the same may be secured by an assignment or pledge of
the income received from the economic opportunity development
district project.

(2) The proceedings under which bonds or notes are authorized
to be issued, when secured by a mortgage or deed of trust, may
contain the same terms, conditions and provisions provided for
herein when an indenture is entered into between the county
commission and a trustee and any mortgage or deed of trust may
contain any agreements and provisions customarily contained in
instruments securing bonds or notes, including, without limiting
the generality of the foregoing, provisions respecting the fixing
and collection of revenues from the economic opportunity
development district project covered by the proceedings or
mortgage, the terms to be incorporated in any lease, sale or
financing agreement with respect to the economic opportunity
development district project, the improvement, repair, maintenance
and insurance of the economic opportunity district project, the
creation and maintenance of special funds from the revenues
received from the economic opportunity development district project
and the rights and remedies available in event of default to the
bondholders or note holders, the county commission, or to the
trustee under an agreement, indenture, mortgage or deed of trust,
all as the county commission body considers advisable and shall not
be in conflict with the provisions of this article or any existing
law: Provided, That in making any agreements or provisions, a
county commission shall not have the power to incur original
indebtedness by indenture, order, resolution, mortgage or deed of
trust except with respect to the economic opportunity development
district project and the application of the revenues therefrom and
shall not have the power to incur a pecuniary liability or a charge
upon its general credit or against its taxing powers unless
approved by the voters in accordance with article one, chapter
thirteen of this code or as otherwise permitted by the Constitution
of this state.

(e) Enforcement of obligations. --

(1) The proceedings authorizing any bonds and any indenture,
mortgage or deed of trust securing the bonds may provide that, in
the event of default in payment of the principal of or the interest
on the bonds, or notes, or in the performance of any agreement
contained in the proceedings, indenture, mortgage or deed of trust,
payment and performance may be enforced by the appointment of a
receiver in equity with power to charge and collect rents or other
amounts and to apply the revenues from the economic opportunity
development district project in accordance with the proceedings or
the provisions of the agreement, indenture, mortgage or deed of
trust.

(2) Any agreement, indenture, mortgage or deed of trust may
provide also that, in the event of default in payment or the
violation of any agreement contained in the mortgage or deed of
trust, the agreement, indenture, mortgage or deed of trust may be
foreclosed either by sale at public outcry or by proceedings in
equity and may provide that the holder or holders of any of the
bonds secured thereby may become the purchaser at any foreclosure
sale, if the highest bidder therefor.

(f) No pecuniary liability. -- No breach of any agreement,
indenture, mortgage or deed of trust shallmay impose any pecuniary
liability upon a county or any charge upon its general credit or
against its taxing powers.

§7-22-20. Use of proceeds from sale of bonds.

(a) General. -- The proceeds from the sale of any bonds issued
under authority of this article shall be applied only for the
purpose for which the bonds were issued: Provided, That any
accrued interest received in any sale shall be applied to the
payment of the interest on the bonds sold: Provided, however, That
if for any reason any portion of the proceeds may not be needed for
the purpose for which the bonds were issued, then the unneeded
portion of the proceeds may be applied to the purchase of bonds for
cancellation or payment of the principal of or the interest on the
bonds, or held in reserve for the payment thereof.

(b) Payment of costs. -- The costs that may be paid with the
proceeds of the bonds include all development and redevelopment
costsexpenditures described in section five of this article and
may also include, but not be limited to, the following:

(1) The cost of acquiring any real estate determined
necessary;

(2) The actual cost of the construction of any part of an
economic opportunity development district project which may be
constructed, including architects', engineers', financial or other
consultants' and legal fees;

(3) The purchase price or rental of any part of an economic
opportunity development district project that may be acquired by
purchase or lease;

(4) All expenses incurred in connection with the
authorization, sale and issuance of the bonds to finance the
acquisition and the interest on the bonds for a reasonable time
prior to construction during construction and for not exceeding
twelve months after completion of construction; and

(5) Any other costs and expenses reasonably necessary in the
establishment and acquisition of an economic opportunity
development district project and the financing thereof.

___________

(NOTE: Strike-throughs indicate language that would be
stricken from the present law, and underscoring indicates new
language that would be added.)